Strategies for loan growth on Green Technology Financing
In Malaysia, there are still many untapped opportunities which can be found in green technology sector because the sector has growth potential and positive prospects that can contribute to the economy. There are approaches or strategies which can encourage companies to participate in the scheme and actively apply for financing from the Participating Financial Institution (PFI). The PFI plays an important role in this sector to ensure the sustainable of loan growth. The financial institution needs to keep develop the expertise and continue update to the latest knowledge, skill as well as technology in the sector. The Green Financing teams ought to have in-depth knowledge and capacity in the process of financing flow which include promotion and development of products, efficacious credit assessment, holistic risk management, robust monitoring and regulation as well as sourcing of projects which are workable. The larger regional or area reach by banks in Malaysia will encourage potential to access or approach talent, which facilitate the effort to build specialised human capital team for the green technology scheme. Customers will be reassurance if the teams in banks are capable and competent. Besides that, the wider area of location reach by banks might urge to more potential customers or borrowers.
Government policies are essential to stimulate and ensure the growth in the sector and industry. The world’s ecosystem now is undergoing abnormal climate change, natural resource depletion, global warming, greenhouse effect and etc. Government requires to promote the ideology of green technology to business people by creating larger awareness among them. In order to arouse people to use green product as well as government procurement policy that prioritise green solution, the government alongside with cooperation of PFI should continue provide necessity assist, attractive incentive and robust infrastructure. Therefore the PFI should reciprocate by allocating the resources provided and putting in place to the needed ecosystem. By this method more people might interest to taking part in green technology scheme and thus they will automatically apply for the GTFS as well as the loan. Moreover, the government needs to strive to build high quality and skilled workforce as well as enhance the co-partnership between research organization and businesses to commercialise for the amplification of innovative green technology research. Hence, people are confidence to trust and participate in GTFS because they feel secure and trustworthy to it. Furthermore, there is an important trend that the price between traditional and green solution are probably to narrow down over time. Under this condition many sectors will be attracted to the green technology sector and significance investment from them might take place, which possible generate high value output and high income job opportunities.